Why JPMorgan Wants to See More Americans on Food Stamps

Every time an American signs up for food stamps in one of 23 states, JPMorgan Chase & Co. (NYSE: JPM) adds to its revenue stream. That because JPMorgan Chase contracts to operate as the processor of the Electronic Benefits Transfer (EBT) cards in those states. JPMorgan earns a fee for each recipient, ranging from 31 cents to $2.30, depending on the state, every month for the term of the contract. JPMorgan's seven-year Supplemental Nutrition Assistance Program (SNAP, the official name for the federal food stamp program) contract with New York state, for example, brought in more than $126 million of revenue to the big bank. Florida has paid JPMorgan more than $90 million since 2007. Pennsylvania's seven-year contract exceeded $112 million. It brings a whole new meaning to "corporate welfare." A decade ago, servicing SNAP recipients wasn't nearly so big a business as it has become in recent years. The number of Americans receiving SNAP benefits has more than doubled since 2000, to an astounding 46.6 million people as of 2012, according to government data. That's nearly 15% of the U.S. population. So it's no surprise that U.S. government spending on food stamp benefits has grown from $18 billion in 2000 to $85 billion in 2012 - a steep increase that has given JPMorgan a nice boost...more

This article is several months old but helps explain why big business opposed the shut down and why they are going after Tea Party candidates in Republican primaries.